Dear brothers and sisters, May 28, 2009; Assalaamu Alaikum Wa Rahmathullahi Wa Bharakhathuhu. In America the average house price is about four years income of the average household. Invariably the houses are purchased on mortgage. A financier provides the price of the house and collects a fixed monthly amount -- mortgage payment -- towards the finance charge and principal [in Isamic financing it is called towards rent and principal] over a period of 30 years. Is this halal? === The words "selling possession" appear in 1 hadith(s) in Abudawud translation. (1) Narrated Abdullah ibn Amr ibn al-'As: The Apostle of Allah (peace_be_upon_him) said: The proviso of a loan combined with a sale is not allowable, nor two conditions relating to one transaction, nor the profit arising from something which is not in one's charge, nor selling what is not in your possession. (Book #24, Hadith #3597)=== Because every mortgage purchase has a loan, by the above Tradition it is not halal. In view of the following Tradition also it is bad to enter into a mortgage purchase. === The words "funeral prayer debt" appear in 4 hadith(s) in Bukhari translation. (1) Narrated Salama bin Al-Akwa: Once, while we were sitting in the company of Prophet, a dead man was brought. The Prophet was requested to lead the funeral prayer for the deceased. He said, "Is he in debt?" The people replied in the negative. He said, "Has he left any wealth?" They said, "No." So, he led his funeral prayer. Another dead man was brought and the people said, "O Allah's Apostle! Lead his funeral prayer." The Prophet said, "Is he in debt?" They said, "Yes." He said, "Has he left any wealth?" They said, ''Three Dinars." So, he led the prayer. Then a third dead man was brought and the people said (to the Prophet ), Please lead his funeral prayer." He said, "Has he left any wealth?" They said, "No." He asked, "Is he in debt?" They said, ("Yes! He has to pay) three Diners.', He (refused to pray and) said, "Then pray for your (dead) companion." Abu Qatada said, "O Allah's Apostle! Lead his funeral prayer, and I will pay his debt." So, he led the prayer. (Book #37, Hadith #488) (3) Narrated Abu Huraira: Whenever a dead man in debt was brought to Allah's Apostle he would ask, "Has he left anything to repay his debt?" If he was informed that he had left something to repay his debts, he would offer his funeral prayer, otherwise he would tell the Muslims to offer their friend's funeral prayer. When Allah made the Prophet wealthy through conquests, he said, "I am more rightful than other believers to be the guardian of the believers, so if a Muslim dies while in debt, I am responsible for the repayment of his debt, and whoever leaves wealth (after his death) it will belong to his heirs. " (Book #37, Hadith #495)=== In the absence of the Khilafath, any Muslim who dies with an outstanding mortgage has not earned the funeral prayer of the Imam of his locality. Is it not better to avoid the debt trap of 30 years? What is the alternative? No apartment owner would rent the apartment if the rent happens to be more than 40% of the monthly wages earned by the tenant. If one knows driving and owns a vehicle he could rent a place away from the city center and save by commuting. He accumulates his savings until he could afford to buy outright a place to live. A just married couple could buy a one bedroom apartment. Now they save the rent too. They continue to save until the sale proceeds of the one bedroom apartment and their savings entitles them to buy a two bedroom apartment. They continue this practice of saving and buying in turn three bedroom apatment, three bedroom single family home and four bedroom single family home when their famly is large enough to need a four bedroom single family home. By far the 'American Dream' is achieved when the family owns a four bedroom single family home. In comparison, buying a four bedroom single family home right away in mortgage is costly as shown below. 1. A four bedroom house at $250,000 with a 6% mortgage has a monthly payment of $1,498.88. The total amount paid in 360 months is $539,596.80. 2. A studio apartment rents around $600. Savings in a month in comparison to the mortgage of $1,500 is $900. If there could be savings from the non-rent 60% of the income, the savings would be more. However let us keep the savings at $900 a month itself. A studio apartment might cost $60,000. This amount is saved in 67 months. That is 5 years and 7 months. 3. The Muslim has bought a studio apartment in 67 months. Now his saving is $1,500 a month. Let us say a one bedroom apartment costs $100,000. The additional $40,000 could be saved in 27 months. Now he buys a one bedroom apartment. 4. In 94 months he has purchased a one bedroom apartment and he is now eligible to get married. Assuming he started working at the age of 21, he is now 29; a reasonable age of marriage now-a-days. The couple save $1,500 a month while living in a one bedroom apartment. Let us say a two bedroom apartment would cost $140,000. Again in another 27 months, the couple moves to a two bedroom apartment. 5. In 121 months, the couple own a two bedroom apartment and they could live in this with two children. Let us say a three bedroom apartment costs $180,000 which is bought in the next 27 months. 6. In 148 months, the Muslim owns a three bedrom apartment and his eldest child would be 4 years old. Now it is time to move to a single family home so that the children have freedom to make noise. Let us say a three bedroom single family house costs $210,000. The additional $30,000 is saved in 20 months. 7. In 168 months, the Muslim owns a 3 bedroom single family house. This house could accommodate up to four children. Now to the ultimate, 4 bedrom single family home, an additional savings of $40,000 is done in 27 months. 8. In 195 months, the Muslim has achieved the 'American Halal Dream.' The best part of the above strategy is that the Muslim was never in debt. Ya Allah! Help the young Muslims in America and other Western countries save and live the 'American Halal Dream.' Aameen, Aameen, Ya Rabbil Aalameen. Your brother,
Mohideen Ibramsha Was Salaam |